The Home Depot Inc. (HD) Downgraded to “Hold” at Zacks Investment Research
According to Zacks, “In response to the evolving retail environment, Home Depot remains keen on building its interconnected capabilities, which is expected to boost its top line, and enhance market share. The company has been gaining from its focus on improving customer experience, solid execution and consistent housing market recovery. These factors also helped its to post its highest quarterly sales and earnings, in the last reported quarter, following which it raised its fiscal 2016 earnings view. Further, Home Depot is on track to achieve its long-term dividend payout, share repurchase and return on investment targets. However, intense competition from specialty stores and mass retailers as well as the impact of soft economic recovery on discretionary spending may prove to be deterrents. Nevertheless, Home Depot's splendid earnings surprise history depicts its inherent strength. Also, estimates have been stable ahead of its third-quarter earnings release.”
A number of other equities research analysts have also weighed in on the company. Vetr lowered The Home Depot from a buy rating to a hold rating and set a $132.30 target price for the company. in a research note on Monday, October 3rd. Morgan Stanley set a $145.00 price target on The Home Depot and gave the company a hold rating in a research report on Wednesday, September 28th. Argus reaffirmed a hold rating and set a $154.00 price target on shares of The Home Depot in a research report on Friday, September 16th. Jefferies Group reaffirmed a buy rating on shares of The Home Depot in a research report on Monday, September 12th. Finally, RBC Capital Markets reaffirmed an outperform rating and set a $155.00 price target (up previously from $150.00) on shares of The Home Depot in a research report on Wednesday, August 17th. Eight research analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company’s stock. The company currently has a consensus rating of Buy and a consensus price target of $146.86.
Shares of The Home Depot (NYSE:HD) traded down 0.63% during midday trading on Tuesday, reaching $124.95. The company’s stock had a trading volume of 929,615 shares. The stock has a market cap of $154.38 billion, a price-to-earnings ratio of 21.15 and a beta of 0.97. The stock has a 50-day moving average price of $128.52 and a 200-day moving average price of $132.25. The Home Depot has a 52-week low of $109.62 and a 52-week high of $139.00.
The Home Depot (NYSE:HD) last released its earnings results on Tuesday, August 16th. The home improvement retailer reported $1.97 earnings per share for the quarter, meeting analysts’ consensus estimates of $1.97. The Home Depot had a return on equity of 110.52% and a net margin of 8.08%. The company earned $26.47 billion during the quarter, compared to analyst estimates of $26.47 billion. During the same quarter in the previous year, the company posted $1.71 EPS. The Home Depot’s revenue for the quarter was up 6.6% on a year-over-year basis. Equities research analysts anticipate that The Home Depot will post $6.33 earnings per share for the current fiscal year.
In related news, CFO Carol B. Tome sold 97,610 shares of The Home Depot stock in a transaction dated Monday, August 22nd. The stock was sold at an average price of $135.35, for a total value of $13,211,513.50. Following the completion of the transaction, the chief financial officer now owns 644,831 shares in the company, valued at $87,277,875.85. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Timothy M. Crow sold 49,392 shares of The Home Depot stock in a transaction dated Friday, August 19th. The stock was sold at an average price of $135.06, for a total value of $6,670,883.52. Following the completion of the transaction, the executive vice president now owns 224,905 shares of the company’s stock, valued at approximately $30,375,669.30. The disclosure for this sale can be found here. 0.26% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brookfield Asset Management Inc. increased its stake in shares of The Home Depot by 16.1% in the second quarter. Brookfield Asset Management Inc. now owns 813 shares of the home improvement retailer’s stock valued at $104,000 after buying an additional 113 shares during the last quarter. Valley National Advisers Inc. increased its stake in The Home Depot by 17.6% in the second quarter. Valley National Advisers Inc. now owns 855 shares of the home improvement retailer’s stock valued at $109,000 after buying an additional 128 shares in the last quarter. First PREMIER Bank increased its stake in The Home Depot by 29.2% in the second quarter. First PREMIER Bank now owns 885 shares of the home improvement retailer’s stock valued at $113,000 after buying an additional 200 shares in the last quarter. Genovese Burford & Brothers Wealth & Retirement Plan Management LLC increased its stake in The Home Depot by 35.3% in the second quarter. Genovese Burford & Brothers Wealth & Retirement Plan Management LLC now owns 917 shares of the home improvement retailer’s stock valued at $117,000 after buying an additional 239 shares in the last quarter. Finally, Invictus RG increased its stake in The Home Depot by 215.7% in the second quarter. Invictus RG now owns 944 shares of the home improvement retailer’s stock valued at $121,000 after buying an additional 645 shares in the last quarter. Institutional investors own 71.87% of the company’s stock.
About The Home Depot
The Home Depot, Inc (The Home Depot) is a home improvement retailer. The Company sells an assortment of building materials, home improvement products, and lawn and garden products, and provides various services. The Home Depot stores serve three primary customer groups: do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers and professional customers.
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